SolarReserve led consortium secures $260m funds for 96MW South African project

Solar project development and investment consortium led by US-based SolarReserve has concluded $260m financing process to fund 96MW solar energy project in South Africa.

The consortium, which also comprises South African companies Intikon Energy and the Kensani Group, is backed by the Public Investment Corporation (PIC), Development Bank of South Africa and the P.E.A.C.E. Humansrus Fund.

The Jasper Project located in the Northern Cape is a part of second round of bids under the South Africa Renewable Energy Independent Power Producer Procurement Program (REIPPPP).

It was approved by South Africa Department of Energy (DOE) in May 2012.

Commenting on the developments, SolarReserve CEO Kevin Smith stated that the Jasper project would provide significant long-term economic benefits to the region, while contributing to nation’s renewable energy efforts.

"The South Africa government’s advanced energy projects are allowing the country to quickly become a model for not only the rest of the continent, but for the world," added Smith.

"We look forward to continuing our work on Jasper and on our other photovoltaic and solar thermal projects in development in South Africa."

South African power utility Eskom has procured a 20-year power purchase agreement to secure the output from Jasper project.

Google, meanwhile, has marked its first investment in Africa by granting $12m to the development of the project, as a part of its $1bn renewable energy initiative.

Google Energy & Sustainability director Rick Needham said: "The Jasper Power Project and other projects being developed through the REIPPPP have the potential to transform the South African power grid, and we’re proud to be a part of that effort."

Earlier in November 2012, the consortium has raised $586m in funds to finance the development of two 75-megawatt solar PV projects – the Letsatsi project and the Lesedi project – in South Africa’s Free State and Northern Cape.

The Jasper and Lesedi projects, along with the Letsatsi project located near Bloemfontein, has increased consortium’s total solar project portfolio to 244MW that accounts to 20% of South Africa’s solar energy market.